Payment of the Forest Charges Due on Timber Covered by Log Scale Reports

March 5, 1959 BIR RULING NO. 139-59 MEMORANDUM FOR: The Chief, Business Tax Division B.I.R., Manila The questioned ruling stating "Log scale reports cannot be substituted for auxiliary invoices. Any forest licensee, whether bonded or not, who transports or removes logs from his concession without accomplishing the corresponding auxiliary invoices shall be liable to the 25% surcharge for transporting without invoice, pursuant to Section 267 of the Tax Code, even if said logs are covered by log scale reports." cdtech has reference to the transportation of logs. Our ruling dated November 5, 1948 which is embodied in Forestry Circular No. 38 dated November 18, 1948 on the other hand, has reference to the payment of the forest charges due on timber covered by log scale reports. By this ruling, this Office did not mean to discard the accomplishment of auxiliary invoices to accompany the removal of timber scaled by forest officers. It is to be observed that log scale reports are accomplished monthly. Unless an auxiliary invoice is required to accompany the transportation of timber scaled by forest offices, there would in effect be on document to accompany any such timber transported, which is rather irregular. We therefore believe that the aforequoted ruling is proper. (SGD.) P. F. LANDAS Revenue Operations Executive (Legal)